The beer market dynamics in Russia is approaching zero, yet major brewers are divided into those who developed considerably in 2017 and those who considerably reduced their volumes. For instance, company Efes has managed to substantially extend their sales due to restrained pricing policy and activity in the modern trade. Heineken has also demonstrated an excellent performance promoted by significant increase of advertisement budgets launching a non-alcohol sort of the title brand and unusual activity in the economy market segment. Carlsberg and AB InBev have been focusing on margins and lost a market share of their inexpensive brands. Serious dependence on PET package and mass enthusiasm about Zhigulevskoe have negatively impacted the most of big regional brewers, that have been for the first time pressed by the leaders in the key sales channels, especially in Volga and Central regions. In the small business there has been a noticeable slowdown in appearing of new restaurant breweries, yet the number of craft breweries has been growing rapidly. In 2018, the beer market is likely to grow a little, while the share of AB InBev Efes may decrease due to the integration. ...
“Catalogue of Russian Beer Producers 2018” includes 1070 businesses ranging from large subsidiaries of international companies to rather small restaurant and craft microbreweries.The catalogue includes 32 large breweries, 75 regional breweries, 693 industrial mini- and microbreweries as well as 270 restaurant breweries. ...
Global hop marketA local alternative to mass beer suggested by independent brewers has been successful and is now altering the global market. Beer is becoming more diversified, so transnational companies have to accept the new game rules and to switch focus to young and fast growing markets. All these processes increased the demand for aroma and bitter hop as well as their acreage expansion on two continents. However now there appeared a downward trend of alcohol consumption in the world, so even special sorts can soon turn to be sufficient. In this connection the dynamic American hop market is already facing some problems. EU hop producers have become more cautious, they are not racing to exceed the demand and look forward with more confidence, judging by the contract terms.
Hop Market in RussiaGermany still dominates the Russian market, yet over the recent two years one has been able observe a continuous success of Czech hop suppliers. Their expansion and growing popularity of hops from the United States became the drivers of supplies growth in 2016 despite the preceding modest harvest crop in the EU, as well as the factor of relative stability in 2017. In this connection, in 2017, the ratio of the varieties continued to shift towards the aroma ones, and the supplies of Magnum hop and other alpha varieties were reduced. However, the import of bitter hop pellets is partially replaced by extracts, especially from the major beer manufacturers. Total volumes of alpha acid supplies, according to our estimation, decreased by approximately 5% and returned to the level of 2015. Barth Haas Group continues dominating the hop products market; HVG also increased its weight. At the same time, Morris Hanbury significantly reduced the supplies in 2017.
China brewers eye Hong Kong Kingway’s beer assets – source
* Kingway shares up 3.2 pct at three-week high
Chinese brewers including China Resources Enterprise Ltd and Tsingtao Brewery Co Ltd are among potential suitors eyeing bids for the brewery operations of Hong Kong-listed Kingway Brewery Holdings Ltd, a source familiar with the matter told Reuters on Monday.
"Many mainland brewers are interested in the assets including CR Snow, Tsingtao, Beijing Yanjing Brewery Co Ltd and Guangzhou Zhujiang Brewery Co Ltd," said a source close to the company, declining to be identified because of the sensitive nature of the matter. "Many of them have asked for supplementary information. Nothing has been finalised yet."
Kingway, a smaller rival of CR Snow, said in January that it planned to invite beer producers to submit proposals and indicative offers for the possible acquisition of some of its brewery business and assets, as the company reviewed its strategy in uncertain economic conditions.
China's largest brewer CR Snow is a joint venture between China Resources and SABMiller Plc.
In April last year, Kingway Brewery said GDH Ltd, a unit of state-backed Guangdong Holdings Ltd, had exercised the right to buy the 21.37 percent stake held by a Heineken NV joint venture in China, blocking a bid from China Resources. GDH would buy the stake for 1.08 billion yuan ($164.94 million), increasing its holding to 73.82 percent.
Kingway was previously jointly controlled by Asia Pacific Breweries Ltd (APB), a unit of Singapore food and property conglomerate Fraser and Neave Ltd, and the world's third-largest brewer Heineken.
Shares of Kingway, which has a market capitalisation of about $570 million, rose 3.2 percent on Monday afternoon, the highest in three weeks.
The world's largest brewer Anheuser-Busch InBev SA had also expressed interest in buying the assets, Dow Jones reported, citing people familiar with the situation. The report added that bids were due by the third week of February and several parties had expressed interest in buying the assets.
China Resources, whose beer brands include Snow, and Kingway declined comment. Anheuser-Busch InBev and Tsingtao were not immediately available for comment.
China's beer consumption hit 450 million hectolitres in 2010. It is expected to grow 5 percent per year in coming years, double the 2.5 percent growth forecast for the global market this year.
Chinese brewers are making an aggressive push into premium brands, lured by high margins and huge growth potential and posing a tough challenge to the foreign companies that dominate the category in the world's largest beer market.
14 Feb. 2012